What is investment controlling?
Investment controlling involves the planning, management, and monitoring of a company’s investments. It encompasses the analysis of investment needs, the planning of fund allocations, the control of investment expenditures, and the evaluation of results.
Investment controlling is an essential component of financial controlling. The goal of investment controlling is to ensure that the company’s investments align with its strategic objectives and are utilized effectively and efficiently.
The tasks of investment controlling typically include the following areas:
Analysis of investment needs: In this step, the company analyzes which investments are necessary to achieve its strategic goals. Various factors are taken into account, such as the competitive landscape, technological developments, and the company’s financial situation.
Planning Fund Allocations: This step involves determining which funds are available to finance the planned investments. It takes into account which funds are already earmarked for other purposes and which funds must be raised through loans or other financing instruments.
Monitoring of Capital Expenditures: This step involves monitoring whether actual capital expenditures align with planned expenditures. If variances occur, an analysis is conducted to determine whether they are justified and what their consequences are.
Evaluation of Results: In this step, we verify whether the results achieved match the expected results. Both financial and non-financial criteria are taken into account. If discrepancies arise, we analyze whether and why they occurred and what measures need to be taken to prevent them in the future.